How Delivery Driver Customers Create the “Shared Mobility Virtuous Cycle” for Dealers

January 17th, 2020 | by Mark Thomas, VP of Marketing and Alliances | Posted in: Across The Board

Ridehailing

According to Instacart, more than 300,000 drivers are needed in the US to do delivery driving during COVID-19 stay-at-home times. That’s an astounding number, and most importantly for dealers, as every driver needs a car.

However, people who decide to enter the delivery driver business don’t always have the best credit, leaving them unable to buy a vehicle, and therefore, unable to work. It’s a vicious cycle; however, Car as a Service allows people to break out of this and enables their productivity and money earning potential.

Shared Mobility allows people to start work with a credit card hold, and platforms can often direct finances so that Shared Mobility payments are deducted on a “pay as you earn” basis.  What this means is that as a new delivery driver earns money, their expenses are automatically paid, thus building credit for themselves.

It also creates a whole bunch of advantages for dealers:

  1. A pool of creditworthy buyers if they choose to purchase a car later on. Many buyers who use Shared Mobility to start delivery driving become credit enabled in just 90 days, which easily facilitates a car purchase.
  2. Customer Loyalty. Anyone who has been helped out of a seemingly hopeless financial situation will remain very loyal. A loyal customer for life is what dealers dream about.
  3. Cash flow from old inventory. All dealers have had a situation where a car has sat on the lot and not sold.  Such vehicles can be put to work in a Shared Mobility fleet, generating revenue to help offset depreciation, while still being available for a buyer; and potentially, the delivery driver might be just that customer.

As can be seen, these are not just advantages for a dealer, but an opportunity to create a symbiotic relationship between dealer and customer that takes customers from a vicious financial cycle to a virtuous Shared Mobility cycle. It’s a big ‘win-win’ for everyone and an immediate opportunity for today that dealers can take advantage of on a Shared Mobility platform.

Author: Mark Thomas, VP of Marketing and Alliances, Ridecell

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